Marketing strategies in the coffee market.

To begin with, the international markets are full of demand and supply. The mechanisms of markets are learnt, but the details about current high-end products prop against buying power in different regions of the world. A man has a constant desire to make his life better and to fulfill the needs in various spheres of life. That reason defined people’s urge to exchange money for products and vice versa. It concerns many kinds of markets, but in this paper it is better to grab attention on the market for high-end coffee equipment determining buying behavior.

Marketing research on the whole is based on tactics and strategies with which managers may have a narrow or wide scope about the tendencies on the market and outer factors as of the problem of product movement. It also regards to the competitors and globality of companies. Looking at the coffee-and-sandwich market, one can see that the spread of it is intensive providing a constant growth. For example, in Ireland it is “now one of the fastest growing sectors of Irish business.” (The Daily Mail, 2008)

“The coffee market is dominated by four major corporations: Kraft, Nestle, Proctor and Gamble and Sara Lee.” (Daily Record, 2007) In Europe and North America and other continents “Starbucks” is known to be a giant in producing coffee beans and equipment for brewing coffee. It is so, because it has a well-developed retail chain and outlets all over the world. Describing present situation in coffee houses of Great Britain a customer can get a cup of coffee for 3 pounds, when people gathering coffee beans somewhere in Africa are paid twice as little.

Here is a motivation to make people think that it is unfair. “The cry of “less aid and more fair trade” seems to be working. Even coffee giants like Starbucks, with 35 stores across Scotland, are making bold moves towards brewing a more ethical cup.” (Daily Record, 2007) This reason helps main corporations to increase their profits by putting pressure on people’s feelings. This is one of the factors that makes an influence on the customer’s choice while being at the coffee bar.

In the United Kingdom market for coffee is in its development, for it has been getting down at a low rate. It was provoked by the consumer displeasure with the affordable equipment and partially by hard-to-recognize coffee marketing. It started in the year 1993 and shows a tendency to support this branch with trendy and innovative approaches. “Volume sales in 1993 totaled 696,000 units, valued at 19 million pounds sterling, against 757,000 units, valued at 21 million pounds sterling, in 1992.

The market is dominated by filter models; with a 77% volume share in 1993.” (Daily Record, 2007) In recent years, gradual increase within the number of subsidiaries of high-end coffee-making companies is 15 per cent annually. In terms of the fast spread of outlets the hopes of the most popular brands for the future are approximately 12 per cent, but it is said to slow down to 7.9 per cent by 2011. (The Daily Mail, 2008) Still market has its main aim to satisfy requirements of distributors and consumers with quality and high-leveled system of service. That is why it is significant to update data about producing and consumption of coffee and coffee machines every month.

In addition one should pay special attention on the process of producing and consuming coffee within most popular coffee brands to forecast the perspectives of the further market development.

References

Rise of the Latte Mafia; Coffee Break: Starbucks Plan to Take over Coffee Industry Popular Starbucks Familiar Logo; The Daily Mail (London, England), 2008.

GRINDING POVERTY; New Movie Exposes the Human Cost of Industry Worth Billions That Pays out Pennies to Coffee Farmers; Daily Record (Glasgow, Scotland), 2007. Web.